![Pennymac is the lender you can call home.](/assets/images/banners-webp/purchasing.jpg)
Open the door to
your new home
Get exclusive savings plus expert guidance every step
of the way to owning your own happy place.
Get My Pre-Approval
Tap into so many ways to save
1% off your
rate for 1 year*
Enjoy lower monthly payments for the
first 12 months of your new mortgage
with Pennymac.
$2,000 when
you refi later1
Get your new home’s mortgage with
Pennymac and receive $2,000 when
you refinance that loan within 3 years.
![](/assets/images/purchasing/white-house.jpg)
![](/assets/images/purchasing/skateboard-lesson.jpg)
$1,000 when
you close**
Take the first step with a free
Pre-Approval and get a $1,000
bonus at closing.
Earn $350
to $9,5002
Connect with a top real estate
agent and save when you buy,
sell, or both.
Explore the types of home loans to find your fit
Conventional Fixed-Rate Mortgages
- Best rates for qualified borrowers
- One rate for the life of your loan
- No mortgage insurance with 20% down
- Plan to stay in your home for a longer period of time
- Have built a credit history
- Already have the funds for a down payment of 5% or more
FHA Mortgages
- Low down payments
- Flexible qualification guidelines
- Fixed-rate and ARM options are available
- Want to make a lower down payment
- Lack a credit history or have had credit problems in the past
VA Mortgages
- Lower or zero down payment needed
- Mortgage insurance is not required
- Flexible qualification guidelines
- Low fixed interest rates
- Are an active military member or veteran
- Are the surviving spouse of a service member and you haven’t remarried
Adjustable-Rate Mortgages (ARMs)
- The lowest short-term rates
- Keeps your monthly payments low for the initial period
- Select an initial rate period of 5-10 years based on your plans for the home
- Plan on moving or selling your home in a few years
- Have built a credit history
- Already have the funds for a down payment of 5% or more
Jumbo Mortgages
- Loan amounts up to $3 million
- Eliminates the need for secondary financing
- Allows borrowers to finance higher loan amounts in counties where the financed amount exceeds the conforming loan limit
- Plan to put 20% down
- Have good credit
- Possess the required reserve funds
Investment Property Mortgages
- Competitive rates on fixed-rate loans
- Higher loan amounts can be permitted
- Have good credit
- Possess the funds for the required down payment
- Are looking to diversify your investment portfolio
- Interested in getting a second home or a vacation home
Ready to take the first step?
We're here to help.
Helpful Homebuying Tools
Customized Rate Quote
Create an instant estimate of your monthly payment and interest rate for the type and length of the loan, based on your information and current rates.
Personalize My RateMortgage Learning Center
Explore quick reads to get the information you need, so you can feel confident on your homeownership journey.
Search ArticlesHome Loan Calculators
Use simple calculators to get a clearer picture of how much you can borrow, how much your payments might be, and whether to rent or buy.
Start CalculatingHome Value Estimator
Receive an instant home value estimate and up-to-date information on any property. View recent home sales in your area of choice.
Try It AgainHomebuying FAQs
Whether or not to buy a home is one of the most important financial decisions an individual or family is faced with. The decision has more to do with your financial planning than it does with constantly fluctuating market conditions. The first step towards determining if it is a good time to buy a home is to speak with a licensed loan officer and learn more about all your options. Once you know what kind of house you can afford and what kind of commitment is required, you can compare it against other options, like renting, and make the decision that makes most sense for you. Check out this article for a deeper look at the pros and cons of buying a home versus renting.
Before determining what list price to target in a new home, you first must understand how much you're comfortable spending on housing per month. A common rule of thumb is to earmark 28% of your post-tax income for house payments, including your homeowner’s insurance and property tax. For example, if your annual income after taxes is $60,000, 28% of that is $16,800, or $1,400 per month. However, every situation is different. It's important to look at all your current and future financial obligations and make the right decision for your unique situation.
We've made doing the math a lot easier for you. Check out our helpful Home Affordability Calculator to assess your debt-to-income ratio, down payment, loan amount and your mortgage payment — all at once! Then, use our Customized Rate Quote tool to see current mortgage rates and your estimated monthly payment.
Not necessarily. Your credit score is only one of the factors taken into consideration when you apply for a home loan. We also review your employment history, income, debt and cash reserves. There are also different kinds of loan products that have varying requirements for your credit history.
Every home loan situation is different, so it's difficult to accurately estimate how long your home mortgage process will take. Some of the factors that affect the timeline include the type of loan, the specific term you're requesting, the amount of required documentation and the time it takes to provide your lender with those documents. Luckily, you're never alone in the process with Pennymac. Our loan officers and processing specialists will work with you every step of the way to ensure that your application is processed as efficiently as possible.
Traditional loans usually require documents that verify your employment, income and assets, and may include:
- Your Social Security number
- Pay stubs for the last two months
- W-2 forms for the past two years
- Bank statements for the past two or three months
- One to two years of federal tax returns
- A signed contract of sale (if you've already chosen your new home)
- Information on current debt, including car loans, student loans and credit cards
There is no way to know how interest rates will fluctuate at any given time, so it’s generally a good idea to lock a rate when you find a loan product that’s in line with your financial goals. To prevent ending up with a higher rate, you can lock the rate, and even the points, for a specified period. Fees may apply, but not always. If rates go down you still have options, but locking a rate will at least protect you from rising rates.
Mortgage closing costs are fees charged for services that must be performed to process and close your loan application, and they may vary depending on a variety of factors. Examples of mortgage closing costs include title fees, recording fees, appraisal fees, credit report fees, pest inspection, attorney’s fees, taxes and surveying fees. The closing cost of a loan will vary depending on your geographic location and the requirements of the loan product.
Lenders are required by law to provide you with your Loan Estimate and the Closing Disclosure to outline your closing costs and help you avoid surprises at the closing table. Your loan officer can answer any questions you have about the different closing costs associated with Pennymac’s mortgage products and what options you may have for minimizing your up-front costs.
Prepayment penalties are rare in today’s mortgages. If you manage to pay off a 30-year fixed rate mortgage in only 15 years, you come out ahead financially because you’ve reduced the amount of interest paid on the loan. Get more info on Early Payoff Options.
While 20% may be the most common down payment requirement for conventional loans, some products, like FHA loans, allow down payments as low as 3.5%. Be sure to weigh all your costs however, since loans with lower down payments can often cost more over the life of the loan.
Often loans that allow less than 20% down on your purchase require paying mortgage insurance until your loan-to-value, or LTV, ratio falls below 80%. Mortgage insurance premiums can vary, with some costing up to $100 per month for every $100,000 borrowed.